The SEC filed its brief to the Fifth Circuit appealing the district court's dismissal of its insider trading charges against Mark Cuban. The SEC argues that

The district court, in dismissing the Commission’s complaint alleging insider trading violations, erroneously failed to apply a valid Commission rule that, by its plain terms, applies to Cuban’s conduct as alleged in the complaint. The district court also failed to recognize that, even apart from the Commission rule, the complaint states a claim under the relevant caselaw. Further, the district court failed, as required on a motion to dismiss, to draw reasonable inferences from the complaint in the Commission’s favor.